CBA-Sponsored Small Business Lending Bill Advances to State Senate

General informationMay 27, 2014

CBA’s sponsored measure Assembly Bill 1858 (Perea), relating to Article 9 of the Uniform Commercial Code and adopting what is known as “Alternative A” (a simplified methodology for identifying a debtor’s name on a financing statement filed with the secretary of state), passed unanimously off the Assembly Floor Friday. The measure minimizes the current documentation needed to verify the identity of a business borrower, improving the customer experience. If enacted, the overall number of financing statements filed with the secretary of state will decline, reducing the filing cost for borrowers associated with these commercial loan transactions, while streamlining the current filing system. As a result, secured creditors will achieve greater efficiency. The measure now heads to the Senate and will likely be referred to the Senate Committee on Judiciary where it is expected to be heard in June. If you have any questions on this issue, please do not hesitate to contact Kevin Gould, CBA’s senior vice president and director of state government relations, at kgould@calbankers.com or (916) 438-4410.